Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Cisco Systems Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Cisco Systems Inc. inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Cisco Systems Inc. receivables turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Cisco Systems Inc. payables turnover ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Cisco Systems Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Cisco Systems Inc. number of days of receivables outstanding improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Cisco Systems Inc. operating cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Cisco Systems Inc. number of days of payables outstanding decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Cisco Systems Inc. cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |
Inventory Turnover
Cisco Systems Inc., inventory turnover calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 18,975) | 21,245) | 19,309) | 17,924) | 17,618) | 19,238) | |
| Inventories | 3,373) | 3,644) | 2,568) | 1,559) | 1,282) | 1,383) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 5.63 | 5.83 | 7.52 | 11.50 | 13.74 | 13.91 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Apple Inc. | 28.87 | 33.82 | 45.20 | 32.37 | 41.75 | 39.40 | |
| Arista Networks Inc. | — | 1.15 | 1.32 | 1.64 | 1.74 | 3.55 | |
| Super Micro Computer Inc. | — | 4.04 | 2.84 | 2.90 | 3.30 | 4.48 | |
| Inventory Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 18.21 | 24.06 | 23.91 | 28.59 | 28.88 | |
| Inventory Turnover, Industry | |||||||
| Information Technology | — | 7.40 | 8.17 | 9.78 | 10.43 | 10.62 | |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 2024 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 18,975 ÷ 3,373 = 5.63
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Cisco Systems Inc. inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Receivables Turnover
Cisco Systems Inc., receivables turnover calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenue | 53,803) | 56,998) | 51,557) | 49,818) | 49,301) | 51,904) | |
| Accounts receivable, net of allowance | 6,685) | 5,854) | 6,622) | 5,766) | 5,472) | 5,491) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 8.05 | 9.74 | 7.79 | 8.64 | 9.01 | 9.45 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Apple Inc. | 11.70 | 12.99 | 13.99 | 13.92 | 17.03 | 11.35 | |
| Arista Networks Inc. | — | 5.72 | 4.75 | 5.71 | 5.95 | 6.15 | |
| Super Micro Computer Inc. | — | 6.20 | 6.23 | 7.67 | 8.27 | 8.89 | |
| Receivables Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 12.08 | 12.46 | 12.78 | 14.72 | 10.89 | |
| Receivables Turnover, Industry | |||||||
| Information Technology | — | 7.37 | 7.42 | 7.55 | 8.00 | 7.59 | |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 2024 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net of allowance
= 53,803 ÷ 6,685 = 8.05
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Cisco Systems Inc. receivables turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Payables Turnover
Cisco Systems Inc., payables turnover calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 18,975) | 21,245) | 19,309) | 17,924) | 17,618) | 19,238) | |
| Accounts payable | 2,304) | 2,313) | 2,281) | 2,362) | 2,218) | 2,059) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 8.24 | 9.19 | 8.47 | 7.59 | 7.94 | 9.34 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Apple Inc. | 3.05 | 3.42 | 3.49 | 3.89 | 4.01 | 3.50 | |
| Arista Networks Inc. | — | 5.13 | 7.33 | 5.27 | 6.23 | 9.41 | |
| Super Micro Computer Inc. | — | 7.52 | 6.71 | 4.94 | 6.74 | 8.34 | |
| Payables Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 3.68 | 3.70 | 4.06 | 4.23 | 3.79 | |
| Payables Turnover, Industry | |||||||
| Information Technology | — | 4.87 | 4.54 | 4.99 | 5.35 | 5.27 | |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 2024 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 18,975 ÷ 2,304 = 8.24
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Cisco Systems Inc. payables turnover ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
Working Capital Turnover
Cisco Systems Inc., working capital turnover calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 36,862) | 43,348) | 36,717) | 39,112) | 43,573) | 47,755) | |
| Less: Current liabilities | 40,584) | 31,309) | 25,640) | 26,257) | 25,331) | 31,712) | |
| Working capital | (3,722) | 12,039) | 11,077) | 12,855) | 18,242) | 16,043) | |
| Revenue | 53,803) | 56,998) | 51,557) | 49,818) | 49,301) | 51,904) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | — | 4.73 | 4.65 | 3.88 | 2.70 | 3.24 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Apple Inc. | — | — | — | 39.10 | 7.16 | 4.56 | |
| Arista Networks Inc. | — | 0.90 | 1.03 | 0.80 | 0.76 | 0.84 | |
| Super Micro Computer Inc. | — | 3.95 | 3.89 | 3.96 | 3.77 | 4.29 | |
| Working Capital Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 24.39 | — | 15.74 | 5.44 | 4.14 | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | — | 5.24 | 5.71 | 3.86 | 2.86 | 3.06 | |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 2024 Calculation
Working capital turnover = Revenue ÷ Working capital
= 53,803 ÷ -3,722 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Cisco Systems Inc., average inventory processing period calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 5.63 | 5.83 | 7.52 | 11.50 | 13.74 | 13.91 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 65 | 63 | 49 | 32 | 27 | 26 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Apple Inc. | 13 | 11 | 8 | 11 | 9 | 9 | |
| Arista Networks Inc. | — | 318 | 276 | 222 | 210 | 103 | |
| Super Micro Computer Inc. | — | 90 | 128 | 126 | 110 | 81 | |
| Average Inventory Processing Period, Sector | |||||||
| Technology Hardware & Equipment | — | 20 | 15 | 15 | 13 | 13 | |
| Average Inventory Processing Period, Industry | |||||||
| Information Technology | — | 49 | 45 | 37 | 35 | 34 | |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.63 = 65
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Cisco Systems Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024. |
Average Receivable Collection Period
Cisco Systems Inc., average receivable collection period calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 8.05 | 9.74 | 7.79 | 8.64 | 9.01 | 9.45 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 45 | 37 | 47 | 42 | 41 | 39 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Apple Inc. | 31 | 28 | 26 | 26 | 21 | 32 | |
| Arista Networks Inc. | — | 64 | 77 | 64 | 61 | 59 | |
| Super Micro Computer Inc. | — | 59 | 59 | 48 | 44 | 41 | |
| Average Receivable Collection Period, Sector | |||||||
| Technology Hardware & Equipment | — | 30 | 29 | 29 | 25 | 34 | |
| Average Receivable Collection Period, Industry | |||||||
| Information Technology | — | 50 | 49 | 48 | 46 | 48 | |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.05 = 45
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Cisco Systems Inc. number of days of receivables outstanding improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Operating Cycle
Cisco Systems Inc., operating cycle calculation, comparison to benchmarks
No. days
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 65 | 63 | 49 | 32 | 27 | 26 | |
| Average receivable collection period | 45 | 37 | 47 | 42 | 41 | 39 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 110 | 100 | 96 | 74 | 68 | 65 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Apple Inc. | 44 | 39 | 34 | 37 | 30 | 41 | |
| Arista Networks Inc. | — | 382 | 353 | 286 | 271 | 162 | |
| Super Micro Computer Inc. | — | 149 | 187 | 174 | 154 | 122 | |
| Operating Cycle, Sector | |||||||
| Technology Hardware & Equipment | — | 50 | 44 | 44 | 38 | 47 | |
| Operating Cycle, Industry | |||||||
| Information Technology | — | 99 | 94 | 85 | 81 | 82 | |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 65 + 45 = 110
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Cisco Systems Inc. operating cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |
Average Payables Payment Period
Cisco Systems Inc., average payables payment period calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 8.24 | 9.19 | 8.47 | 7.59 | 7.94 | 9.34 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 44 | 40 | 43 | 48 | 46 | 39 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Apple Inc. | 120 | 107 | 105 | 94 | 91 | 104 | |
| Arista Networks Inc. | — | 71 | 50 | 69 | 59 | 39 | |
| Super Micro Computer Inc. | — | 49 | 54 | 74 | 54 | 44 | |
| Average Payables Payment Period, Sector | |||||||
| Technology Hardware & Equipment | — | 99 | 99 | 90 | 86 | 96 | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | — | 75 | 80 | 73 | 68 | 69 | |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.24 = 44
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Cisco Systems Inc. number of days of payables outstanding decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
Cash Conversion Cycle
Cisco Systems Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 65 | 63 | 49 | 32 | 27 | 26 | |
| Average receivable collection period | 45 | 37 | 47 | 42 | 41 | 39 | |
| Average payables payment period | 44 | 40 | 43 | 48 | 46 | 39 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 66 | 60 | 53 | 26 | 22 | 26 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Apple Inc. | -76 | -68 | -71 | -57 | -61 | -63 | |
| Arista Networks Inc. | — | 311 | 303 | 217 | 212 | 123 | |
| Super Micro Computer Inc. | — | 100 | 133 | 100 | 100 | 78 | |
| Cash Conversion Cycle, Sector | |||||||
| Technology Hardware & Equipment | — | -49 | -55 | -46 | -48 | -49 | |
| Cash Conversion Cycle, Industry | |||||||
| Information Technology | — | 24 | 14 | 12 | 13 | 13 | |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 65 + 45 – 44 = 66
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Cisco Systems Inc. cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |